Petrotrin: A&V Drilling contract terminated

The contract between the controversial A&V Drilling and state-owned Petrotrin has been terminated.

In a statement issued by Petrotin on Friday, the company said it gave a written notice of termination to the lease operator this week.

It said this followed the investigation into reports of discrepancies in the reported oil production and actual receipts by its Internal Audit Department earlier this year.

Last month, Petrotrin reported that its Audit Department's findings had been confirmed by an independent, Board-commissioned, forensic audit conducted by Canadian consultancy firm Kroll Consulting Canada Co.

Another report from global oil and gas consultants, Gaffney Cline, had also advised that the reservoir from which the oil had been produced, was incapable of yielding the reported volumes.

Petrotrin's Chairman Wilfred Espinet defended the pace of the investigation.

He said while some commentators have expressed concern with the progress in the matter, it was critical that the Board act only after careful consideration of all relevant matters, including the response of the lease operator to the findings.

"Adherence to the process is the most important component of the exercise. We are being guided by expert counsel and we are committed to ensuring that we do things in accordance with proper procedure."

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